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I’m looking to purchase a condo as an investment that I can rent out to offset the mortgage and expenses. I came across a web site for Minnesota Partners of Costa Rica that illustrates a slam dunk rental program on their properties. I’ve visited another discussion forum about this company but there was not much information that was useful.
I’ve been searching outside the US where it seems the property is more attractive and clearly much more affordable. Reading some of the threads across the internet would lead me to believe there is a great deal of risk involved, but yet development in many areas seems to be booming so it can’t be all bad.
Does anyone have any experience looking for property with a similar objective as mine? Any advice or recommendation would be greatly appreciated whether it be in Costa Rica or another location. My goal is to invest in an area where I can eventually retire (in 20 years).
There is alot of info online on the laws of renting in CR. If you are looking to offset your costs for mortgage and expenses be prepared to have tenents that may NOT pay rent, and it could be at least 3 months befor you may be able to get them evicted. I don’t own any rental properties in CR, but do have rental properties in Florida where I live and I know from those experiences it can be a nightmare, even with checking references etc.. If you have NEVER had a rental property you may want to start somewhere closer to home. Just my personal opinion especially since you are looking to offset your current costs.
Good Luck!These are “projections” only on this site and from what I can see – nothing has even been built yet. Not a long track record then eh?
I would suggest that the only REAL “slam dunk rental program” that you will find is with a project that has already been built and that has already been rented.
ANYBODY can make “projections.” Here’s another “projection” for you… Most of the real estate development projects that are dreamed of in Costa Rica NEVER even get built!
Scott
This is terrific, real life advice – thank you
Would you consider writing a brief article for us about the problems you have faced in the past with tenants? And advice on how to avoid those problems?
Scott – Founder
WeLoveCostaRica.comScott,
I would be glad to put together an article on our rental experiences. Even though the laws in Florida are a little different, the eviction process doesn’t seem to be to far off from that of CR. Give me a few weeks and I will send to you personally for your review.Debbie
Scott, is that really true about projects never being built? If so, do you find that to the be the case in certain areas or just in general, and is it projects that get started and are abandoned? That is the case I have seen here on the Pacific.
No! There are abandoned projects in all areas of the country but the majority are certainly near the beach.
Trying to fulfill “dreams” helps build a person, shared dreams have built thousands of companies and have created entire nations but, there are also plenty of shattered dreams that have left people pracxtically destitute.
My goal is simply to ensure that our VIP Members understand the “risks” of these kinds of projects. Most of our members do not have hundreds of thousands of dollars that they can afford to ‘risk’. And, they are at stage in life (45-60) where starting all over again, is NOT easy.
As with the investment strategy used for my clients (Sorry! But we can not work with US clients), it’s always “high probability with low-risk.”
Why SPECULATE with money that most of our members should not be SPECULATING with? Why not stick to evaluating quality projects that are being built by people with proven experience in Costa Rica real estate development (rather than Minnesota).
I am NOT suggesting that Minnesota Partners of Costa Rica will NOT get built, they may be extremely well-funded and very knowledgeable but, if that was the case, why do they need your money to build?
Scott
Scott,
I just returned from visiting with Trevor Chilton to discuss the Jardines de Ensuenos project. The whole approach of this project is to achieve above average ROI. thru condo rentals. He is a canadian having lived in CR the past 4 years. Planning this project the past 2-3 years. His plan seems very credible. This is his first project in C.R. Any opinion on this projest? I notice another thread with this Question but no responses.
donbuc,
Thanks so much for this lead. This project does indeed seem credible. The idea that it is being designed with rentals as their primary focus, backed by the fact they intend to remain on as property manager, makes this seem ideal as an investment opportunity. I have poured over the immense amount of information on their web site and effectively communicated via email with Trevor Chilton over the past day and I am about sold.
You say you met with him on site? Do you have any information you can share that would make you believe this is not 100% legit?
One of the links brings you to an article entitles “To scam or not to scam…” Right out of the gate he mentions that their laywer is Jose Raphael Fernandez, supposedly a contributing author to this very web site and aquaintence of Scott Oliver. Any comments on this?
Steve
I have have spent quite a bit of time near jaco over the last 4 years, although generaly try to avoid it. Just not what I came to costa rica to enjoy. I don’t doubt at all that this project is ‘legit’ although there are still some extra risks involved with buying pre construction, however if all goes well you may be rewarded for assumeing the extra risk. But my goal in owning in C.R. has always been enjoyment first and if I get some monetary return all the better. This central pacific area in and around Jaco is steeped in hotels, rental houses, condos etc..I would not want to buy something based on rental income in such a competitive and seasonal market. Also most people in the know stay away from jaco and simply make trips into town when needed. The prices seem very good though if one is buying as a vacation home, i’m not looking to rain on anyones parade but this is my opinion.
Although I have not visited his project and therefore am not in a position to offer a qualified opinion, I did recommend attorney José Rafeal Fernandez to Trevor.
Scott Oliver
I do not know which project you all are talking about, but if it has anything to do with Minnesota Partners of Costa Rica, back away!!!!
We gave Minnesota Partners of Costa Rica $48,000 back in July 2006. They ended up backing out of the deal and we can’t get out money back. They keep saying they are putting our names in a trust and we will receive our money as soon as their other projects sell. They sold and we still have not received our money.
Look at their website. Vista Hermosa and Costa Marina were never built. They still show they they sold out. I know Vista Hermosa sold out and no one has received their money back.
We have contacted some investors and are looking for others to figure out of we can do something as a group.
I can tell you that dealing with Richard Saphir of Minnesota Partners of Costa Rica was one big mistake for us. He won’t even respond to our emails now.
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